8.—6.

therefore be a further diminution of interest charge in connection with the 1867 loan when the estimates for next year are laid before you. The charge under this loan for interest and sinking fund has been diminished by £182,957, and the conversion of some provincial and other loans increased the saving to £189,344. On the other hand, the interest charge has been augmented to the amount of £32,323 owing to the issue of additional 3j-per-cent. Inscribed Stock, and to the creation of debentures for the purpose of satisfying the roading requirements of local authorities, and for the purchase of Native and private lands to be thrown open for settlement. The total set down for the payment of permanent charges under special Acts will be found to be in excess of last year's estimates by the sum of £8,922, and this arises chiefly (with the exception of £1,000 under the Payment of Members Act) from increased provision having to be made for the payments to local authorities of revenues which we are obliged by law to hand over to them. Departmental Expenditure. Passing on to the departmental estimates, you will find a saving of £21,311 in the Colonial Secretary's Department arising out of the absence of the main cost of the late general elections, and non-recurrent items amounting to some £8,510, which were last year provided for in the Miscellaneous vote. Savings amounting to £12,316 have been made in the estimates of the Treasury, Customs, Defence, and other departments. The Commissioners of Working Eailways have been able to effect a saving of £9,821 in their estimates. The reduced proposed expenditure of the ordinary annual departmental character as compared with last year's estimate amounts to £43,448. But it is necessary to make increased provision for certain public services, such as education, postal and telegraphic conveniences, the survey of our lands, and other expenses, the cost of which is certain to augment in a ratio with the increase of population and the necessities of the country. For such conveniences we have to pay an extra cost of £19,688 for postal and telegraphic services, £5,282 for education, £2,797 for surveys, and £2,321 for police protection. Some smaller items, making up £1,610, swell the total increases to £31,698, which deducted from the savings, as before stated, reduces our departmental estimates for the current year to a net saving of £11,750 over those of last year. I think members will agree with me that such a result is highly satisfactory, and I can assure them that an immense amount of labour and consideration has been devoted to the preparation of these estimates by my colleagues and myself in order that the requirements of the public may be met, while at the same time the strictest economy is observed. Estimated Eβvenue. Having mentioned that our expenditure for the year is estimated at £4,301,098, it is necessary that I should state what revenue we anticipate will be received during the same period. I estimate the ordinary revenue at £4,235,000, as against £4,262,200, the estimate for last year, and £4,368,538 of actual receipts. Although there was an actual excess of revenue over the last year's estimate amounting to upwards of £106,000, I have not deemed it prudent to take as a guide these increased receipts in estimating the current year's figures. I prefer to err on the right side. Owing to bad harvest, low prices, and slight financial disturbances, the receipts from railways and Customs show a falling-off. If, then, there should be a disparity between the estimated and the actual results, the discrepancy will place me in no financial difficulty. No Colonial Treasurer should run the risk of having to announce a "deficit" —such a word should have no place in- New Zealand Budgets. Having therefore considered that £4,235,000, or £133,538 less than last year, will be received during the current year, a few of the principal differences may be explained. In the Customs the estimated decrease is £55,503. Although our Customs duties have fallen somewhat during the first three months of the year, I do not think there is sufficient cause for any fear of the drop continuing. Stamps revenue shows a decrease of £36,648, but, as the actual receipts last year

Charges under special Acts,

Table No. 8. Proposed expenditure compared with the estimates of last year.

Table No. 9. Revenue for 1894-95 estimated at £4,235,000.

VI